Is ICC-Cal (Israel Credit Cards) attempting to block the deal whereby Isracard will become the issuer of the credit card for El Al’s Matmid frequent flyer program? In a letter to Matmid CEO Moshe Morgenstern, bearing the heading “Urgent warning before institution of legal proceedings – fundamental breach of agreement in principle, duty of exclusivity, and prohibition against approaching customers,” ICC-Cal, headed by Yafit Gheriani, raises claims concerning the way in which the deal was reached, and demands that Isracard should not begin issuing new cards jointly with Matmid at this stage.
“On 26.3.26, ICC-Cal received a letter from Matmid concerning the exercise of the right to exit the agreement in principle signed between the parties on 11.12.2018. In accordance with Matmid’s notification, the contract will end on 31.12.2026,” the first paragraph of ICC-Cal’s letter states.
The letter continues: “Astonishingly, at the same time as Matmid’s notification, instant reports were published, media interviews were given, and reports circulated on social media, from which it emerges that Matmid and Isracard intend to act to transfer customers and issue new cards in the coming weeks.”
The company stresses that under the existing agreement, even in the event of a contract with another company such as is taking place with Isracard, there are clear restrictions: no use may be made of information about cardholders and they may not be approached with alternative offers until three months before the termination of the contract.
ICC-Cal is threatening legal action. “Any attempt by Matmid and Isracard, directly or indirectly, to approach customers of the program (including El Al employees) ‘in the coming weeks’ or to make use of data belonging to the joint venture in order to ‘prepare the ground’ for the transfer, and certainly the issuing of cards (except for what is explicitly permitted in the agreement in principle) will represent, among other things, a fundamental and blatant breach of the agreement in principle on the part of Matmid, as well as the basis of breach of contract on the part of Isracard, with all that that implies, including the matter of the right to the phantom option. In the light of the above, you are required not to begin and/or to cease immediately any marketing action, approach to customers, card issue, or use of information on personal details of the cardholders.”
ICC-Cal raises the possibility of obtaining an injunction. “ICC-Cal will not accept this underhand move and breach of the agreement. Unless your immediate undertaking is received that you will act punctiliously in accordance with the provisions of the agreement in principle and the timetable set out in it (i.e., use of cardholder data, including for the purpose of an approach with an alternative offer and contracting with issuance agreements to existing customers, from October 2026 only, and not issuing bronze cards before the end of the contract period), ICC-Cal will act using all the legal means available to it, including an urgent resort to the courts to obtain an injunction and to sue for all the huge damage that will be caused to it as a result of your conduct,” the letter states.
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The letter is signed by ICC-Cal VP and legal counsel Adv. Vered Oren.
Published by Globes, Israel business news – en.globes.co.il – on March 29, 2026.
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